| You should compare prices carefully when insuring your home as you may be able to save by taking these simple steps: |
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Increase your deductible. To reduce insurance costs, carry the highest deductible possible. The higher the deductible, the lower the premium the insurance company will charge you. Your savings could reach 25% by increasing the deductible from $100 to $1,000. Just make sure you have enough available cash on hand to cover the larger deductible. |
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Improve home security. Most insurance companies offer discounts for homes with smoke detectors, burglar alarms, dead bolts, fire extinguishers,etc. Alarm systems connected to a third-party monitoring system earn even higher discounts. |
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Consolidate policies. You can receive “multiple coverage” discounts by using one carrier for all of your insurance needs. |
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Check for available record and renewal discounts. If you go without a claim for three to five years, you may be eligible for a discount. And most companies that service a policy for three consecutive years offer a discount based on longevity of service. |
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Find out if additional discounts apply for mortgage-free homes. Some insurance companies offer 5% discounts to people who have paid off their mortgage. |
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See if new and renovated homes qualify for additional discounts. You may qualify for discounts if your home was built or rebuilt within the past 10-15 years. |
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Investigate additional incentives, including the availability of non-smoker discounts, early retirement incentives, and discounts for homeowners with live-in housekeepers. |
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| Mortgage lenders require borrowers to carry insurance. But even if you own your homes outright, you should keep it insured. The typical homeowner policy covers loss or damage to the property as well as personal liability, which covers suits from injuries or illnesses related to the property. |
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| Common Coverage |
| The homeowner’s policy is a package that combines more than one type of insurance coverage. There are four basic types of coverage contained in a homeowner’s policy: |
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Dwelling and Personal Property — If a car plows into your picture window, your homeowner’s policy will likely cover damage to the structure. |
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Personal Liability — If someone trips on your front steps, your policy may cover the legal fees if they decide to sue. |
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Medical Payments — If your home has radon, medical treatment for visitors to your home who suffered radon poisoning may be included in your coverage. |
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Additional Living Expenses — If your home becomes uninhabitable, you may be paid expenses for time spent in a hotel. |
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